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Probably even cheaper internet, UK
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by The_Cynic | September 15, 2009 at 01:35 pm
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British Telecom is a large company - and for years it has had its hands tied to stop it sweeping away new telecommunication companies - now that has been removed.
Until now BT has been constrained from offering “triple-play” packages of fixed-line calls, digital television and broadband services for less than it would cost to buy each service separately, because of fears that it would abuse its market position to stifle competition.
The internet in the UK is, compared to anything in North America, cheap. Some speeds, up to 10 Mb, go for as little as $10 a month - and that is an unbundled package - and that is because of real competition.
So what does this now mean for the others in the market where BT can now play on what they call a level field.
BSkyB, the satellite operator, which is 39.1 per cent-owned by News International, parent company of The Times, described Ofcom’s decision as “irrational”.
News International also owns Fox News in the US - Murdoch press. So why do they say this is irrational - it means, now, that BT can move into Sky's market - this was advocated by Rup Murdoch's son when he advocated loudly that the BBC should be commercialised so this would lead to Sky having more of the market share and reducing the monolith that the BBC is, or so he claimed.
You cannot have it both ways - you either want competition or not.
Claire Enders, of Enders Analysis, the telecoms and media research group, said: “This will be good for consumers. This is also good for BT because it can move more speedily and provide more innovation in terms of pricing and bundling. If anything, this move is overdue.”
Steve Weller, of USwitch, the price comparison service, said that the move could lead to a price war.
A price war indeed - and when companies have these wars - generally it is the customer who gets a lot more for a lot less - is that a bad thing?
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